The average rate for a 30-year fixed-rate mortgage jumped up to 3.22% this week, according to Freddie Mac. That’s the highest level since May 2020.
Mortgage rates increased across loan categories this week. The average rate on a 15-year fixed-rate mortgage is up to 2.43% and the rate on a 5-year adjustable-rate mortgage is steady at 2.41%.
Mortgage interest rates for the week ending January 6, 2022
Mortgage rate trends
Average rates are higher this week:
- The current rate for a 30-year fixed-rate mortgage is 3.22% with 0.7 points paid, 0.11 percentage points higher week-over-week. At this time last year, the average rate was 2.65%.
- The current rate for a 15-year fixed-rate mortgage is 2.43% with 0.6 points paid, an increase of 0.10 percentage points from last week. A year ago the average rate was 2.16%.
- The current rate on a 5/1 adjustable-rate mortgage is 2.41% with 0.5 points paid, unchanged from last week. The average rate was 2.75% at this time last year.
“Mortgage rates increased during the first week of 2022 to the highest level since May 2020 and are more than half a percent higher than January 2021,” said Sam Khater, Freddie Mac’s chief economist in a statement.
Today’s mortgage rates and your monthly payment
The rate on your mortgage can make a big difference in how much home you can afford and the size of your monthly payments.
If you bought a $250,000 home and made a 20% down payment — $50,000 — you would end up with a starting loan balance of $200,000. On a $200,000 home loan with a fixed rate for 30 years:
- At 3% interest rate = $843 in monthly payments (not including taxes, insurance, or HOA fees)
- At 4% interest rate = $955 in monthly payments (not including taxes, insurance, or HOA fees)
- At 6% interest rate = $1,199 in monthly payments (not including taxes, insurance, or HOA fees)
- At 8% interest rate = $1,468 in monthly payments (not including taxes, insurance, or HOA fees)
You can experiment with a mortgage calculator to find out how much a lower rate or other changes could impact what you pay. A home affordability calculator can also give you an estimate of the maximum loan amount you may qualify for based on your income, debt-to-income ratio, mortgage interest rate and other variables.
Other factors that determine how much you’ll pay each month include:
Choosing a 15-year mortgage instead of a 30-year mortgage will increase monthly mortgage payments but reduce the amount of interest paid throughout …….